Most syndicators say they're selective. Here's exactly what that means for us.
The Sourcing Funnel
Cornell Communities operates a multi-state acquisition strategy across 8 states with ~$25M AUM and 10 properties. Deals come through three primary channels:
- Broker relationships built over years of consistent follow-through and closing track record
- Direct outreach to mom-and-pop operators nearing retirement who have held assets for decades
- Network referrals from attorneys, lenders, and fellow operators who know our criteria
We look at dozens of deals for every one we pursue seriously. That ratio is intentional.
The 60-Second Screen
Before any deep work begins, a deal has to pass a quick filter:
- Minimum ~30 lots (smaller parks carry disproportionate fixed-cost risk)
- Lot rent at or below 60-70% of local market rate (the value-add lever must exist)
- City water and/or sewer, OR a well/septic system with documented maintenance history (infrastructure is the #1 hidden risk in this asset class)
- Market with stable or growing population (we do not speculate on turnaround markets)
- Asking price that underwrites to a minimum 1.25x DSCR at conservative assumptions
If a deal fails any of these, we stop. We do not negotiate with fundamentals.
The 5 Things That Make Us Walk Away
- Deferred infrastructure we cannot quantify (aging water mains, unknown septic systems, failing roads)